British broadcaster Granada said today it expected advertising revenue at its biggest TV channel, ITV1, to rise by two per cent in its first quarter but said it could not look beyond the end of the year.
The company also drew a line under its costly misadventure into digital terrestrial broadcasting with a £250 million writedown of goodwill after the collapse of its ITV Digital pay-TV joint venture in April.
Its lack of confidence in predicting ad revenues into 2003 is shared by fellow British TV broadcaster Carlton Communications, which agreed in October to a £1 billion takeover bid by Granada.
The two firms hold most of Britain's 15 ITV regional commercial television licences which, taken together, constitute the country's largest commercial free-to-air broadcaster.
Granada reported narrowing profits for the year ended September 30th, reflecting the sharp downturn in advertising spend by companies struggling with a global economic slowdown.
Annual profit before tax, goodwill and exceptional items fell 10 per cent to £176 million, but the result exceeded analysts' forecasts of 3139 million to £170 million .
ITV has been battling to hold onto its audience in the face of competition from media baron Mr Rupert Murdoch's BSkyB and the publicly funded BBC.
The network suffered its worst ever viewing figures in the summer but has boosted programming spend and has pledged an extra £100 million in 2003 to fight the ratings war.
Granada has boosted ratings with shows such as reality TV programmes 'Popstars: The Rivalsand I'm a Celebrity - Get Me Out of Here!and historical drama productions such as Doctor Zhivago.
Granada said a single ITV was achievable by 2003. The proposed takeover of Carlton is awaiting regulatory clearance from the British government.